Is there only one option?

Deep_In_Debt

I believe that is the case. But I may be wrong.

Posthinking

Dez-Titute wrote: »

The one big issue here is the fact that you friend has been made redundant,therefore if he cannot afford the mortgage and his normal living expenses the OR could refuse bancruptcy.

The OR doesn't get involved until a bankruptcy application has been granted by a judge at the County Court. A judge may refuse to sign the order, particularly if advice hasn't been sought. As I see it that's not the case.

southernbouy

I believe that is the case. But I may be wrong.


You are very clever on this matter deep in debt, how do you know so much, have you had an early discharge yet?

Posthinking

Dez-Titute wrote: »

The OR can if he sees fit not allow the BR to proceed the thought process behind this is whats the point making someone BR when they can't afford their basic living expenses and would end up having to go BR for a second time with more serious consequences.
Having never come across anyone who has been refused can't expand further however I'm sure a more learned poster will be along to enlighten us all.

Cheers DEz

Sorry mate but you're misleading the OP. Why on earth would you need to have a job to seek BR? Most on here are BR because of job loss. The OR deals with post BR matters and doesn't decide whether you can be BR or not.

diablobear

OK, so if he gets a job, albeit, a lot less than he was earning which provides him enough to cover the mortgage and normal living expenses, but not enough for the other creditors and HMRC or someone else petitions for his BR -

• Can someone still purchase the BI in the house, if a creditor makes him BR? (The house has a little equity but the mortgage is around same if he would rent somewhere for him & his Mum).
• Is his Mum classed as a dependent, therefore giving them a year to find somewhere else for her to live?
• If he is not allowed to continue with the mortgage, will the OR accept that he has to pay rent for somewhere for both him and his Mum to live together?
• If his Mum is classed as a creditor, will he get a BRO/BRU for preferring a her as a creditor by paying the mortgage, even though he lives in the house?

Thanks again in advance.

Dez-Titute

Posthinking wrote: »

Sorry mate but you're misleading the OP. Why on earth would you need to have a job to seek BR? Most on here are BR because of job loss. The OR deals with post BR matters and doesn't decide whether you can be BR or not.

I think you answered your question with your earlier post.Who decides is irrelevant.

Richard_S

Hi diablobear,

If a person's liabilities exceed their assets they're insolvent, and bankruptcy is the remedy. A bankruptcy petition won't be refused; a judge doesn't look at an income and expenditure budget.

If the bankrupt can't afford to pay his/her mortgage the house will be repossessed; if that makes the bankrupt homeless then in theory there are safeguards to ensure he/she doesn't end up homeless.

Notwithstanding the complexity of how the house was financed, and who has a claim over the B.I, the Court is only concerned with assets & liabilities. Its the O.R's job to pick over the legal issues of any property involved, and the bankrupts responsibility, with the help (:rolleyes: :rolleyes: ) of the benefits system to ensure housing and a basic level of subsistence.

Richard

Posthinking

diablobear wrote: »

OK, so if he gets a job, albeit, a lot less than he was earning which provides him enough to cover the mortgage and normal living expenses, but not enough for the other creditors and HMRC or someone else petitions for his BR -

• Can someone still purchase the BI in the house, if a creditor makes him BR? (The house has a little equity but the mortgage is around same if he would rent somewhere for him & his Mum).
• Is his Mum classed as a dependent, therefore giving them a year to find somewhere else for her to live?
• If he is not allowed to continue with the mortgage, will the OR accept that he has to pay rent for somewhere for both him and his Mum to live?
• If his Mum is classed as a creditor, will he get a BRO/BRU for preferring a her as a creditor by paying the mortgage, even though he lives in the house?

Thanks again in advance.

Darling whether he gets a job or not the outcome is the same. BRO is extremely unlikely so forget about that and even if he does so what?

BI in house? possible yes

His mum? That's classed as vocational so Yes and no she wont be classed as preferential. It's their home. I have to say it is likely they will lose the house but a couple of my learned friends will confirm soon. Creditors seldom make you BR, costs too much although HMRC have been known to. it's our money they use after all

Posthinking

Richard_S wrote: »

Hi diablobear,

If a person's liabilities exceed their assets they're insolvent, and bankruptcy is the remedy. A bankruptcy petition won't be refused; a judge doesn't look at an income and expenditure budget.

If the bankrupt can't afford to pay his/her mortgage the house will be repossessed; if that makes the bankrupt homeless then in theory there are safeguards to ensure he/she doesn't end up homeless.

Notwithstanding the complexity of how the house was financed, and who has a claim over the B.I, the Court is only concerned with assets & liabilities. Its the O.R's job to pick over the legal issues of any property involved, and the bankrupts responsibility, with the help (:rolleyes: :rolleyes: ) of the benefits system to ensure housing and a basic level of subsistence.

Richard

My learned friend has arrived:T

Richard_S

diablobear wrote: »

OK, so if he gets a job, albeit, a lot less than he was earning which provides him enough to cover the mortgage and normal living expenses, but not enough for the other creditors and HMRC or someone else petitions for his BR -

• Can someone still purchase the BI in the house, if a creditor makes him BR? Yes, if there is little or no equity, and the cost of renting an appropriate property is about the same then there's nothing to be gained by the O.R forcing the sale of the house.(The house has a little equity but the mortgage is around same if he would rent somewhere for him & his Mum).
• Is his Mum classed as a dependent, therefore giving them a year to find somewhere else for her to live?The O.R is never in a hurry to force a sale; it's always a last resort, if the bankrupt can't or won't make a reasonable offer for the B.I.
• If he is not allowed to continue with the mortgage, will the OR accept that he has to pay rent for somewhere for both him and his Mum to live?Yes
• If his Mum is classed as a creditor, will he get a BRO/BRU for preferring a her as a creditor by paying the mortgage, even though he lives in the house?No, preferential treatment is repaying one creditor in favour of another; not for paying towards the expenses of a property where he/she is living.

Thanks again in advance.

There is also a very real chance that his Mother has a B.I in the property, which will make it more complex, but ultimately, and hopefully, a more acceptable outcome.


Richard